FTX lawsuits against Tom Brady and others are consolidated in Florida

In the aftermath of the collapse of FTX, eight lawsuits were filed against various defendants, including Tom Brady. On Monday, those eight cases were consolidated and coordinated in federal court in the Southern District of Florida.

Defendants in the FTX cases include Tom Brady and Jaguars quarterback Trevor Lawrence. The Golden State Warriors have been sued, along with NBA Hall of Famer Shaquille O’Neal.

"We are grateful to the [United States Judicial Panel on Multidistrict Litigation] for granting our Motion and consolidating all FTX cases before Judge K. Michael Moore, who will certainly continue to efficiently and effectively coordinate all of these important actions here in Miami," attorney Adam Moskowitz said in a statement. Moskowitz has been litigating various actions against FTX in Miami, along with with co-counsel David Boies.

The company imploded last year, with civil and criminal liability for founder Samuel Bankman-Fried. For the defendants like Brady, the discovery process surely will focus on what they knew and when they knew it about the viability of the company.

Brady recently agreed to purchase a minority interest in the Raiders, subject to league approval. It arguably would be foolish for the NFL to vote on Brady's suitability to join Club Oligarch without fully understanding the potential consequences of the FTX litigation.

Does anybody REALLY think that any celebrity endorsers knew anything about the fraud that FTX executives perpetrated on FTX clients? Even mere weeks before the implosion, FTX was widely respected and considered the model crypto exchange by industry experts – and even the US Government. Any reasonable due diligence done by the celebrities or their business managers would have come back clean. Sometimes people are just criminals and they blatantly break laws and commit fraud. There is usually no shortage of lawyers in the aftermath looking to sue anyone with deep pockets to make a quick buck.

Unless there is some other shoe to drop, all the celebrites who were promoting FTX had no insider knowledge of the impending failure of FTX. They were compensated to do a job, the information they were provided with was that the company was legitimate. They also lost lots of potential money.

Ultimately it's just a way to get attention from the press on an otherwise boring financial story. All the celebrity lawsuits will eventually be dropped unless there was some understanding from Brady or Shaq or Larry David that they had some awareness of the ongoing fraud before or during their promotion of FTX.

pftmaniac says:June 5, 2023 at 12:54 pmDoes anybody REALLY think that any celebrity endorsers knew anything about the fraud that FTX executives perpetrated on FTX clients? Even mere weeks before the implosion, FTX was widely respected and considered the model crypto exchange by industry experts – and even the US Government. Any reasonable due diligence done by the celebrities or their business managers would have come back clean. Sometimes people are just criminals and they blatantly break laws and commit fraud. There is usually no shortage of lawyers in the aftermath looking to sue anyone with deep pockets to make a quick buck.

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Much like the housing market in 2007 or the Bernie Madoff ponzi scheme, the lack of transparency was obvious but when all the banks and whale investors are making money there's a lot of pressure to not look to closely. In fact questioning the crazy huge returns causes people to look at you more suspiciously than the firm sending them a report with a lot of zeros on it.

The audits that were provided weren't traditional public company audits. They were given the numbers but weren't allowed to see where the numbers came from. They didn't audit the "internal controls".

Many crypto companies were also using a "proof of reserve" report and labelling it an audit which are 2 different things.

I think Angel Hernandez should have been named in the suit. He wore a patch on his uniform last year.

Maybe THAT would get him off of MLB diamonds LOL

If you still allocate your money based on celebrity endorsements, you deserve to lose it.

pftmaniac says:June 5, 2023 at 12:54 pm

Does anybody REALLY think that any celebrity endorsers knew anything about the fraud that FTX executives perpetrated on FTX clients?

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They likely didn't, which is they should not have gone beyond simply publicizing the product and into endorsing (making claims about performance and stability) like the lawsuits claim. In other words, there's a difference between "Hey everybody, look into FTX for your crypto transfers" and "I went with FTX because they are the safest exchange."

They also likely didn't realize that the laws regarding securities advertising are quite different and far more extensive than those governing ads for sneakers and energy drinks.

The thought of seeing Tom Brady show up in court wearing shackles and a prison jumpsuit got me sweating profusel and very excited.,Then my fever dream crashed when I realized that it's only a civil trial. There's no excitement in seeing Tom Brady write checks.

taking financial advise from professional athletes is not a smart move. Look how many are broke or bankrupt after playing. So just don't do it.

The Lions allocate their money to the casino and sports books.

It's a shame for the non-Brady celebrity endorsers bc this is only about Brady, but the psycopaths with their list need to collaterally ruin them all for cover. If Brady wasn't here none of the endorsers would be named at all. The psycopaths got umber 1 on their list to arrest in order to attempt to ruin, they haven't got number two yet, Mr. Musk, but they’re going for number three on the list, Tom Brady. That's all this is about.

Does anybody REALLY think that any celebrity endorsers knew anything about the fraud that FTX executives perpetrated on FTX clients?________

To me the fascinating part is they got such poor advice they left themselves exposed at all. Just take a handsome conventional payment instead of stock and there is zero legal exposure and the authorities wouldn't even be looking into it. It's pretty insane that people like Brady, Shaq, etc. had advisors who were totally asleep at the wheel and that reportedly Taylor Swift was the only one who asked any questions and thus stayed out of the mess.

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